Companies are being forced to deal with the consequences of a changing climate, which is leading to more frequent and destructive wildfires and other types of disasters than ever before.
PG&E's situation is a warning to other power companies and businesses around the country.
A battle between California politicians and PG&E, the state's largest utility, is being waged over who should have to pay the price of wildfire damage in recent years.
Why it matters: Companies are being forced to deal with the consequences of a changing climate, which is leading to more frequent and destructive wildfires and other types of disasters than ever before. PG&E's situation is a warning to other power companies and businesses around the country.
The big picture:Last year was the worst wildfire season in California's history.
The Camp Fire, which destroyed the town of Paradise, was the costliest catastrophe worldwide, with $16.5 billion in damages, per reinsurance companyMunich Re.
PG&E could be on the hookforbillions of dollarsin liability costs related to last year and the prior year's wildfires, far more than its insurance would cover. The Camp Fire alone killed at least 86, and may have been triggered by a spark from PG&E's power lines.
The mounting costs have led the company to consider bankruptcy. Its share price has been cut in half and CEO Geisha Williams has abruptly left the company.
PG&E's electrical equipment was blamed for sparking 17 of California's major wildfires in 2017.
Edison International, whose subsidiary services southern California, is also facing scrutiny for its potential role in the Woolsey Fire that struck Malibu in 2018. Edison's share price has taken a hit in recent months.
Driving the news:California is one of the few states that hold utilities liable for damages tied to their equipment, even if the companies were in compliance with the state's safety rules. Lawmakers have to decide whether or not the state's utilities will be able to pass current — and what's sure to be future — liability costs onto customers.
Climate change is lengthening the wildfire season in California, and leading to larger, more severe fires. These trends are expected to continue, according to acomprehensive federal climate assessmentreleased late in 2018. This means that PG&E's current woes may only intensify in coming years.
"Market participants have woken up to the reality that [wildfires] can happen again and probably will. The expected value of future wildfire liabilities is so much bigger [thanks to climate change]," Michael Wara, a research fellow at Stanford University's Energy and Policy program, tells Axios.
“The devastating impacts of extreme weather is one of the most important issues currently facing the state of California today,” a PG&E spokesperson tells Axios. “We are committed to working closely with the Governor, the California Public Utilities Commission, policymakers, and other stakeholders to continue to provide PG&E customers the safe gas and electric services they expect and need.”
Yes but: Some warn against the company using climate change to cover up potential acts of negligence, like failing to trim trees or properly maintain equipment.
Why you'll hear about this again:The rest of the U.S. is increasingly feeling the effects of climate change, from the Gulf Coast, where the Florida Panhandle was hit by itsstrongest hurricane on recordjust last year, to New England, where Boston observed itshighest water levelon record in 2018.
The National Climate Assessment found that the power sector is particularly vulnerable to climate change.
Utilities in hard-hit states could be increasingly cash strapped, and some will likely face stark questions about their liability in contributing to particular disasters.
The NCA found that a sea level rise of 1 meter, or 3.3 feet, by 2100 "would put an additional cumulative total of 25 gigawatts of operating or proposed power capacities at risk" of flooding.
The bottom line:PG&E's predicament could be repeated elsewhere as the impacts of climate change hit increasingly hard.
Филиал № 4 ОСФР по Москве и Московской области информирует:
В Московском регионе свыше 11,3 тыс. неработающих родителей получают пособие по уходу за ребенком до 1,5 лет
Филиал № 4 ОСФР по Москве и Московской области информирует:
С 1 августа Соцфонд увеличит страховые пенсии россиян
Филиал № 4 ОСФР по Москве и Московской области информирует:
За полгода 14,9 тысячи жителей Московского региона оформили страховую пенсию в автоматическом режиме на портале госуслуг
Филиал № 4 ОСФР по Москве и Московской области информирует:
С начала года 86 тысяч работающих мам в Москве и Московской области получили пособие по беременности и родам
Meta's Mark Zuckerberg chews AI cud with Nvidia's Jen-Hsun Huang, talking about delicious cows, slicing tomatoes, and old Chinese guys drinking whiskey
Co-op survival game Enshrouded now lets you make things way tougher, or way easier, with an update that adds more than 30 difficulty sliders
Former GTA dev says 'it's time for a revolution' where 'animation is more AI-driven and physics-driven' than done by hand
Blizzard politely tells Hearthstone players their game isn't dead just because it's not getting a new cosmetic board this expansion
Филиал № 4 ОСФР по Москве и Московской области информирует:
С начала года 86 тысяч работающих мам в Москве и Московской области получили пособие по беременности и родам
Филиал № 4 ОСФР по Москве и Московской области информирует:
В Московском регионе свыше 11,3 тыс. неработающих родителей получают пособие по уходу за ребенком до 1,5 лет
Филиал № 4 ОСФР по Москве и Московской области информирует:
Отделение СФР по Москве и Московской области выплатило единовременное пособие при передаче ребенка на воспитание в семью 474 семьям региона
Суд арестовал имущество фигурантов дела «Военторга» о хищении средств МО
Филиал № 4 ОСФР по Москве и Московской области информирует:
Более 12 тысяч жителей Москвы и Московской области получают повышенную пенсию за работу в сельском хозяйстве
Филиал № 4 ОСФР по Москве и Московской области информирует:
С начала года 86 тысяч работающих мам в Москве и Московской области получили пособие по беременности и родам
Три миллионника обогнали Москву по темпам роста цен на новостройки
Филиал № 4 ОСФР по Москве и Московской области информирует:
Отделение СФР по Москве и Московской области выплатило единовременное пособие при передаче ребенка на воспитание в семью 474 семьям региона
Meta's Mark Zuckerberg chews AI cud with Nvidia's Jen-Hsun Huang, talking about delicious cows, slicing tomatoes, and old Chinese guys drinking whiskey
Сбер подарил Пскову умный фонтан
Осторожно, слепни! Доктор Кутушов предупредил об опасных насекомых
Бронируем поездку мечты: как в России развивается внутренний туризм
Mash: арестованному блогеру Эдварду Билу грозит ампутация левой ноги
Mash: Бил госпитализирован из спецприемника, ему может грозить ампутация ноги
Симптом «масляного пятна»: какие болезни можно определить по состоянию ногтей
Врач-офтальмолог, заведующий рефракционным отделением клиники микрохирургии глаза АйМед, офтальмохирург Кирилл Светлаков: что такое цифровая гигиена и как ей следовать
Обычные комары становятся новой угрозой для россиян
Светлана Акулова провела лекцию «Окрыленная Москва. Как птицы помогают москвичам, а москвичи – птицам»
На конкурс путешествий отправили 10 видео об отдыхе в Приамурье
Сбер и Комитет по природопользованию, охране окружающей среды и обеспечению экологической безопасности Санкт‑Петербурга подписали соглашение о сотрудничестве